I've researched local markets and don't think Ill have any issues finding a renter at about a 10% return after taxes and insurance. 

Given appreciation is typically where you are making most of your return in any real estate, having this additional appreciation helps create much higher returns.Additionally, my single family tenants, typically stay a couple years longer than my duplex tenants.  

All of these factors can lead you well into double digit and even triple digit net-worth returns on investment (NROI). 

As an owner-occupier, you can pay more than an investor would, but as I said above, you are going to be a little hamstrung in return rents unless you can get 3 other units and then that is a do you want to live with three tenants that close when you have two kids.Find some local real estate investor meetups in the area and you will meet a lot of house hackers who can tell you their stories.

While S8 can be appealing for its steady payments, in my experience, the returns often aren’t worth the effort, especially for newer investors.

Through depreciation, particularly accelerated depreciation and bonus depreciation, you can typically offset all rental income such that there is no taxable income from your rental . 

Quote from @Sam Lewis: I understand the benefits behind hard money lending, its guarenteed return from your cash... however, what cases would a hard money lender trust someone they don't know/barely know?

It may limit attic space, however you should have plenty of room for Airhandlers, Waterheaters, etc. in the non-living area of the home on the ground floor.

Most of return comes from appreciation so even if your market pricey see if can find anything that is neutral cashflow wise.

There’s a separate kitchen and living space on each level, acting as a non-conforming up/down duplex.